Headlines
UK government stands by its pledge on income tax, minister says
Published by Global Banking & Finance Review®
Posted on October 24, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 24, 2025
2 min readLast updated: January 21, 2026
The UK government remains committed to its income tax pledge, despite potential changes in the upcoming budget to address a deficit.
LONDON (Reuters) -Britain's ruling Labour Party remains committed to its pre-election tax pledges, including on income tax, minister Nick Thomas-Symonds told Sky News on Friday, ahead of next month's budget.
Reeves and Prime Minister Keir Starmer told voters before last year's election that they would not raise the rates of social security contributions, value added tax (VAT) or income tax on what they called "working people".
The Guardian on Thursday reported that finance minister Rachel Reeves was considering raising income tax in the budget to help close a multibillion-pound deficit.
"We stand by our manifesto pledges on VAT, on national insurance and on income tax," Thomas-Symonds said when asked about the Guardian report.
In her first budget last year, Reeves increased the rate of social security contributions, or National Insurance Contributions, paid by employers but said she remained committed to not raising the tax burden on working people.
The Guardian said officials were weighing options including an increase in the basic rate of income tax or changes to thresholds, though no final decision has been made.
Earlier this month, the National Institute of Economic and Social Research said that Reeves should break her promise on income tax rather than attempt to raise the £30 billion ($40.26 billion) in revenue she is expected to need in more economically damaging ways.
($1 = 0.7451 pounds)
(Reporting by William James;Writing by Catarina Demony)
Income tax is a tax imposed on individuals or entities based on their income or profits. It is typically calculated as a percentage of the income earned during a specific period.
Social security contributions are payments made to fund social security programs, which provide benefits for retirement, disability, and unemployment. These contributions are usually deducted from an employee's paycheck.
Value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of production or distribution. It is typically charged to the end consumer.
A budget deficit occurs when an entity's expenditures exceed its revenues over a specific period. This situation can lead to borrowing or the need to cut spending.
Explore more articles in the Headlines category
